Ceragon Reports 2025 Third Quarter Financial Results

Company delivers solid revenue, margin, and cash flow in third quarter, with improved visibility

ROSH HA'AIN, Israel, Nov. 11, 2025 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today reported its financial results for the third quarter period ended September 30, 2025.

Q3 2025 Financial Highlights:

Q3 2025 Business Highlights:

Ceragon's CEO, Doron Arazi, commented: "Ceragon delivered solid financial results with positive free cash flow, while seeing improved visibility in our key markets. Business activity in North America has accelerated, and India showed signs of improvement, giving us more confidence as we move through the fourth quarter. While earnings were impacted by foreign exchange fluctuations related to a project in India, non-GAAP profitability and cash flow performance remained solid.

"Ceragon has the potential to benefit from recent trends in network utilization, including AI evolution," continued Mr. Arazi. "Service providers and enterprises are increasingly prioritizing network capacity and resilience to handle the increased traffic. Wireless transport is increasingly being considered alongside fiber to deliver redundancy, flexibility, and faster time to market. We believe these dynamics are creating new opportunities for Ceragon. Our E-band and point-to-multipoint technologies directly address these needs, helping carriers and private networks build the next generation of high-capacity, resilient connectivity.

"Combined with improved visibility, these trends increase our confidence in our 2025 outlook. We also expect these trends to enable growth in 2026," concluded Mr. Arazi.

Primary Third Quarter 2025 Financial Results:

Revenues were $85.5 million, down 16.7% from $102.7 million in Q3 2024.

Gross profit was $29.4 million, giving us a gross margin of 34.3%, compared to a gross margin of 34.0% in Q3 2024.

GAAP Operating income was $3.8 million compared with $14.6 million for Q3 2024.

GAAP Net income was $0.0 million, or $0.00 per diluted share, compared with $12.2 million, or $0.14 per diluted share, for Q3 2024.

Non-GAAP results were as follows: Gross margin was 35.0%, operating profit was $5.3 million, and net income of $1.7 million, or $0.02 per diluted share.

For a reconciliation of GAAP to non-GAAP results, see the attached tables.

Balance Sheet

Cash and cash equivalents were $43.0 million on September 30, 2025, compared to $35.3 million on December 31, 2024.

Revenue Breakout by Geography:

Q3 2025

North America

41 %

India

29 %

EMEA

12 %

Latin America

9 %

APAC

9 %

Outlook

Based on management's current view, the Company assumes the following:

Conference Call

The Company will host a Zoom web conference today at 8:30 a.m. ET to discuss the financial results, followed by a question-and-answer session for the investment community.

Investors are invited to register by clicking here. All relevant information will be sent upon registration.

For investors unable to join the live call, a replay will be available on the Company's website at www.ceragon.com within 24 hours after the call.

About Ceragon

Ceragon (NASDAQ: CRNT) is a global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.

Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more, who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries.

Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast to deploy, high-capacity wireless solutions for a wide range of communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources - driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider for the "connectivity everywhere" era.

For more information, please visit: www.ceragon.com

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON® is a trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders.

Safe Harbor

This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management about Ceragon's business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.

Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company's forward-looking forecasts, with respect to which there is no assurance that such forecasts will materialize; Company's ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases, business concepts, technologies, future demand, and necessary inventory levels; the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; The effects of the war situation in Israel and the related evolving regional conflicts; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operation, as further detailed in Ceragon's most recent Annual Report on Form 20-F, as published on March 25, 2025, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.

While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.

The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.

Ceragon Investor & Media Contact:

Rob Fink

FNK IR

Tel. 1+646-809-4048

crnt@fnkir.com

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Revenues

85,484

102,672

256,398

287,258

Cost of revenues

56,134

67,732

169,509

186,789

Gross profit

29,350

34,940

86,889

100,469

Operating expenses:

Research and development, net

6,955

8,750

22,536

25,982

Sales and Marketing

12,609

10,871

36,628

33,640

General and administrative

6,013

688

18,389

8,846

Restructuring and related charges

3,732

1,416

Acquisition- and integration-related charges

724

1,377

Total operating expenses

25,597

20,309

82,009

71,261

Operating income

3,753

14,631

4,880

29,208

Financial and other expenses, net

2,976

1,834

4,882

6,611

Income (loss) before taxes

777

12,797

(2)

22,597

Taxes on income

749

580

2,217

2,144

Net income (loss)

12,217

(2,219)

20,453

Basic net income (loss) per share

0.00

0.14

(0.02)

0.24

Diluted net income (loss) per share

0.00

0.14

(0.02)

0.23

Weighted average number of shares used in

computing basic net income (loss) per share

90,296,561

86,280,444

89,509,052

85,849,886

Weighted average number of shares used in

computing diluted net income (loss) per share

91,744,069

88,333,970

89,509,052

87,948,342

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September

30,

December

31,

2025

2024

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

42,987

35,311

Trade receivables, net

111,954

149,619

Inventories

58,420

59,693

Other accounts receivable and prepaid expenses

22,131

16,415

Total current assets

235,492

261,038

NON-CURRENT ASSETS:

Severance pay and pension fund

963

4,915

Property and equipment, net

39,782

36,764

Operating lease right-of-use assets

16,118

16,702

Intangible assets, net

22,659

16,791

Goodwill

11,046

7,749

Other non-current assets

861

1,037

Total non-current assets

91,429

83,958

Total assets

326,921

344,996

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

69,637

91,157

Deferred revenues

1,906

2,573

Short-term loans

31,000

25,200

Operating lease liabilities

3,731

2,971

Other accounts payable and accrued expenses

23,526

29,547

Total current liabilities

129,800

151,448

LONG-TERM LIABILITIES:

Accrued severance pay and pension

3,283

8,359

Operating lease liabilities

12,883

12,936

Other long-term payables

8,841

5,928

Total long-term liabilities

25,007

27,223

SHAREHOLDERS' EQUITY:

Share capital

234

232

Additional paid-in capital

453,576

447,369

Treasury shares at cost

(20,091)

Other comprehensive loss

(8,261)

(10,060)

Accumulated deficit

(253,344)

(251,125)

Total shareholders' equity

172,114

166,325

Total liabilities and shareholders' equity

326,921

344,996

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Cash flow from operating activities:

Net income (loss)

12,217

(2,219)

20,453

Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

Depreciation and amortization

3,436

2,981

10,400

8,861

Loss from sale of property and equipment, net

169

Stock-based compensation expense

862

907

3,061

3,377

Decrease in accrued severance pay and pensions, net

(723)

(167)

(646)

(731)

Decrease (increase) in trade receivables, net

12,130

(8,540)

40,292

(17,787)

Increase in other assets (including other accounts

receivable, prepaid expenses, other non-current

assets, and the effect of exchange rate changes on

cash and cash equivalents)

(1,904)

(929)

(4,223)

(2,312)

Decrease (increase) in inventory

1,276

(640)

1,403

7,915

Decrease in operating lease right-of-use assets

962

1,067

3,016

3,693

Increase (decrease) in trade payables

(5,233)

7,152

(23,278)

7,741

Increase (decrease) in other accounts payable

and accrued expenses (including other long-term payables)

(2,358)

443

(4,889)

349

Decrease in operating lease liability

(810)

(565)

(1,725)

(3,507)

Decrease in deferred revenues

(520)

(206)

(684)

(3,152)

Net cash provided by operating activities

7,161

13,720

20,533

25,069

Cash flow from investing activities:

Purchases of property and equipment, net

(3,150)

(2,899)

(10,576)

(10,854)

Software development costs capitalized

(964)

(249)

(2,675)

(1,238)

Payments made in connection with business

acquisitions, net of acquired cash

(6,570)

Net cash used in investing activities

(4,114)

(3,148)

(19,821)

(12,092)

Cash flow from financing activities:

Proceeds from exercise of stock options

265

655

807

Proceeds from (repayments of) bank credits and loans, net

10,500

(3,250)

5,800

(7,400)

Net cash provided by ( used in) financing activities

10,504

(2,985)

6,455

(6,593)

Effect of exchange rate changes on cash and cash equivalents

220

124

509

(607)

Increase (decrease) in cash and cash equivalents

13,771

7,711

7,676

5,777

Cash and cash equivalents at the beginning of the period

29,216

26,303

35,311

28,237

Cash and cash equivalents at the end of the period

42,987

34,014

42,987

34,014

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

GAAP cost of revenues

56,134

67,732

169,509

186,789

Stock-based compensation expenses

(134)

(109)

(323)

(374)

Amortization of acquired intangible assets

(422)

(189)

(1,378)

(567)

Excess cost on acquired inventory in business

combination (*)

(124)

Non-GAAP cost of revenues

55,578

67,434

167,808

185,724

GAAP gross profit

29,350

34,940

86,889

100,469

Stock-based compensation expenses

134

109

323

374

Amortization of acquired intangible assets

422

189

1,378

567

Excess cost on acquired inventory in business combination (*)

124

Non-GAAP gross profit

29,906

35,238

88,590

101,534

GAAP Research and development expenses

6,955

8,750

22,536

25,982

Stock-based compensation expenses

(190)

(173)

(468)

(509)

Non-GAAP Research and development expenses

6,765

8,577

22,068

25,473

GAAP Sales and marketing expenses

12,609

10,871

36,628

33,640

Stock-based compensation expenses

(304)

(341)

(944)

(1,024)

Amortization of acquired intangible assets

(275)

(117)

(772)

(505)

Non-GAAP Sales and marketing expenses

12,030

10,413

34,912

32,111

GAAP General and administrative expenses

6,013

688

18,389

8,846

Stock-based compensation expenses

(234)

(284)

(1,326)

(1,470)

Non-GAAP General and administrative expenses

5,779

404

17,063

7,376

GAAP Restructuring and related charges

3,732

1,416

Restructuring and related charges

(3,732)

(1,416)

Non-GAAP Restructuring and related charges

GAAP Acquisition- and integration-related charges

724

1,377

Acquisition- and integration-related charges

(20)

(724)

(1,377)

Non-GAAP Acquisition- and integration-related

charges

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

GAAP Operating income

3,753

14,631

4,880

29,208

Stock-based compensation expenses

862

907

3,061

3,377

Amortization of acquired intangible assets

697

306

2,150

1,072

Excess cost on acquired inventory in business combination (*)

124

Restructuring and other charges

3,732

1,416

Acquisition- and integration-related charges

724

1,377

Non-GAAP Operating income

5,332

15,844

14,547

36,574

GAAP Financial and other expenses, net

2,976

1,834

4,882

6,611

Leases – financial expenses

(152)

(501)

(1,290)

(182)

Non-cash revaluation associated with a business combination

(122)

1,972

(318)

Non-GAAP Financial and other expenses, net

2,848

1,211

5,564

6,111

GAAP Tax expenses

749

580

2,217

2,144

Non-cash tax adjustments

(413)

Non-GAAP Tax expenses

749

580

2,217

1,731

GAAP Net income (loss)

12,217

(2,219)

20,453

Stock-based compensation expenses

862

907

3,061

3,377

Amortization of acquired intangible assets

697

306

2,150

1,072

Excess cost on acquired inventory in business combination (*)

124

Restructuring and other charges

3,732

1,416

Acquisition- and integration-related charges

724

1,377

Leases – financial expenses

152

501

1,290

182

Non-cash revaluation associated with a business combination

(24)

122

(1,972)

318

Non-cash tax adjustments

413

Non-GAAP Net income

1,735

14,053

6,766

28,732

GAAP basic net income (loss) per share

0.00

0.14

(0.02)

0.24

GAAP diluted net income (loss) per share

0.00

0.14

(0.02)

0.23

Non-GAAP Diluted net income per share

0.02

0.16

0.07

0.33

Weighted average number of shares used in computing GAAP basic net income (loss) per share

90,296,561

86,280,444

89,509,052

85,849,886

Weighted average number of shares used in computing GAAP diluted net income (loss) per share

91,744,069

88,333,970

89,509,052

87,948,342

Weighted average number of shares used in computing non-GAAP diluted net income per share

91,744,069

88,333,970

91,507,031

87,948,342

(*) Consists of charges to cost of revenues for the difference between the fair value of acquired inventory in business combination, which was recorded at fair value, and the actual cost of this inventory, which impacts the Company's gross profit.

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SOURCE Ceragon Networks Ltd.